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1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the...

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Page 1: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing
Page 2: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

1 What is Teriyaki Madness?

2 Our Story

3 The Food

4 Why Teriyaki Madness

8 Why Fast Casual

9 Why Asian Food

10 Our Customers

11 Raving Fans

12 Why We’re Unique

13 Let’s Talk Money

14 Available Territories

15 Hear it From Shop Owners 16 What Makes a Good Teriyaki Shop Owner

17 A Day in the Life

18 Education Timeline

19 Steps to Own a Shop

20 Future Growth

21 Meet the Management Team

23 Real Estate and Construction

24 Product Quality & Supply Chain

25 Vendor Relationships

26 Operations

27 Marketing 28 Mobile App

29 FAQ & Fun Facts

30 In The News

Page 3: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

What is TERIYAKI MADNESS?IT'S FAST CASUAL. AND FRESH.

1

Teriyaki Madness provides the ultimate Teriyaki Shop experience, serving oversized portions of marinated grilled chicken, beef or tofu and rice or fresh cut veggies wok-tossed in our house-made sauces to create authentic Asian bowls heaping with fresh, healthy ingredients. We combine the traditional values of Seattle’s beloved teriyaki houses to bring a new option to cities and small towns across the country.

We believe both quality and quantity matter. TMAD combines only the highest quality ingredients in our dishes (fresh all-natural chicken, fresh cut veggies, homemade, gluten free sauces) with every order cooked to order in five to eight minutes. Our customers leave full and satisfied (and often with leftovers!).

We take great pride in our menu items. Our dishes are cooked to order, boasting heaping helpings of meat perfectly marinated in our house-made sauces, fresh vegetables atop a massive serving of sushi-grade rice (white, brown or fried) or yakisoba noodles.

Page 4: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

OUR STORY 2

There’s a reason Teriyaki Shops are found everywhere in Seattle; teriyaki is delicious, healthy and fast. The founder’s love affair with teriyaki started in Seattle as students, then was brought home to Las Vegas in 2003 to see if it would work in a totally different market. It wasn’t long before they had built a community of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing its community of Teriyaki Shop owners and food fanatics nationwide. With success across the country, we took TMAD to the next level. TMAD is spreading fast and now operates in 19+ states and 55+ open shops.

What Makes us Different?

Our Food We believe in food that feeds our souls. Fresh meals,

made when and how someone orders, without hesitation.

Our Culture We believe in building a culture made of people and NOT bottom lines. We take risks and dream big. We work together, we succeed together, we laugh together. It’s team from top to bottom.

Our Support We believe if we take you on as a restaurant

“newbie” we have the obligation to hold your hand all the way! On the flip side, if we take you in as an established and experienced restaurant owner, we have the obligation to support you in your growth and needs as a multi-unit owner.

Page 5: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

The Food 3WARNING: HIGHLY ADDICTIVE

We serve up quality, fresh, healthy and flavorful Asian food in a high-vibe atmosphere. Through years of mastering marinating, grilling, and wok-ing, we were able to make bowls that are as hearty and delicious as they are healthy. Our food is made when you order. Always fresh, never frozen, marinated and grilled meats, and customizable bowls meant for delicious and healthier eating. We have a collection of sauces, made from scratch with the best ingredients so we can bring a one-of-a-kind teriyaki taste to each bowl at an affordable price. Teriyaki Madness brings teriyaki to a whole new level with a family friendly, neighborhood feel.

Page 6: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

OUR AWARDS. NOT TO BRAG...

TMAD owners, customers, and the franchise industry thinks pretty highly of us! Check out the awards we’ve won over the last few years.

WHY TERIYAKI MADNESS?

The Future 50 - Restaurant Business Teriyaki Madness has made the list for Restaurant Business’ ‘The Future 50’. Ranking in at #23, TMAD is being recognized for the system wide sales and our impressive growth!

Top 100 Movers & Shakers - Fast Casual

Fastest Growing Private Companies in America - Inc, 5000 List

11 Restaurant Franchises on the Cusp of Greatness - QSR

4

Fastest Growing Franchises and Top Emerging Franchises - Franchise Gator

*Refer to our 2019 Franchise Disclosure Document

Teriyaki Madness ranked in at #11, on the Fastest Growing Franchises list. TMAD was recognized for our extraordinary opportunity to own a restaurant at a reasonable cost between $273,699-$616,760* with a proven 2018 AUV of $1,038,975*. Ranking in at #20 on the Top Emerging Franchises list, TMAD's unique concept combined with a mature business system paves the way for our expanding success.

Teriyaki Madness was featured in QSR's ‘11 Franchises on the Cusp of Greatness’. TMAD was recognized for our Average Unit Volumes (AUVs), profit potential, and expansion!

Teriyaki Madness was featured in Fast Casual’s ‘Top 100 Movers & Shakers’ list in2018 + 2019! TMAD was recognized for the growth plan and technological advancement.

Ranking in at #3723, this achievement puts TMAD in rare company and we are included with top companies such as Microsoft, Timberland, Vizio, Intuit, Chobani, Oracle, and Zappos.com.

Page 7: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

OUR AWARDS. NOT TO BRAG...

WHY TERIYAKI MADNESS? 5

Restaurant BusinessThe Future 50

There’s perhaps no better method of detecting bankable trends than examining the country’s fastest-growing small chains. These concepts earned their spots on Restaurant Business’ annual ‘Future 50’ ranking by posting impressive sales growth while also differentiating their menu, format and operation, signaling that innovation is in.

#23 Teriyaki Madness

Teriyaki Madness describes its menu as “Seattle teriyaki,” a reference to the Asian-bowl joints that dot the progressive Pacific Northwest city. The fast-casual concept has grown from its first location in 2003 to about 50 shops nationwide, but it talks a much bigger story. It has signed deals for 140 new franchise shops and also expects to have 100 units open within a decade in Mexico, where its first international outpost is slated to open later this year.

International Franchise Association Franchisee of the Year

The International Franchise Association has recognized one of Great Falls very own. Aaron Weissman, owner of Teriyaki Madness, received the ‘National Franchisee of the Year’ award.

Weissman says although he was a surprised by the award, he is very humble: “It’s such a testament to the wonderful people that work here in Great Falls.”

“I tried the food and I thought, ‘Oh my God, it’s so good.’ I thought we had to have one of these in Great Falls. So I worked hard for a couple of years and I made sure that we got one open,” Weissman said.

Teriyaki Madness, located on 10th Avenue South, is the only one in Montana; it opened in April 2017.

Weissman says the best thing about owning a franchise is working with his employees, and with other organizations in Great Falls.

Page 8: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

OUR FOOD

WHY TERIYAKI MADNESS?

TERIYAKI in Japanese is comprised of two words:“Tare” which refers to the glaze of soy sauce, mirin and other spices, and “Yaki” which refers to the specific method of grilling or broiling. However you spell it, it’s delicious.

Nine SIGNATURE SAUCES are made in-house,and are so popular, many consumers ask how to bring the madness home.

YAKISOBA has been a popular dish in Japan forover 100 years, first being served in food stalls in alleys and markets. Our yakisoba noodles are the best this side of the Pacific!

CHICKEN TERIYAKI is our #1 seller…a favoriteamong our consumers! Spicy chicken is the favorite among our repeat customers. It’s maddeningly delicious!!

Veggies are steamed or stir-fried and are anecessary addition to any meal.

MAC SALAD is our take on the popular andflavorful Hawaiian dish and pairs beautifully with our spiciest entrées…or on its own!

APPETIZERS are a great (and delicious!) up-sellopportunity; potstickers, edamame, crab rangoon’s and eggrolls!

6

sushi-grade Calrose rice is grown in California,and makes the best sticky rice around.

Page 9: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

A majority of our menu is made in-house from scratch, making Teriyaki Madness one of the freshest and most authentic restaurant concepts in the market.

7

This is our entire menu!

WHY Teriyaki Madness?THE SIMPLE MENU

Page 10: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

FAST CASUAL. A GROWING INDUSTRY

WHY Fast Casual?

FAST FOOD

FAST CASUAL

CASUAL DINING

FAST DINING

8

The term fast casual describes a restaurant between a quick serve and casual dining experience. It is one of the fastest growing sectors in the restaurant industry.

The segment is rapidly growing because consumers love the concept. It fits the need to eat on the run while offering healthy options. The food is fresher, higher quality and more customizable than fast food. Consumers are saying bye bye to boil-in-the-bag and hello to made to order and are fine paying extra for higher quality, fresher food.

Source: http://nrn.com/sponsored-content/why-fast-casual-eating-industry-s-lunch

The Proof

The fast casual sector in the restaurant industry shows amazing numbers in the past few years, plus the it is expected to continue to perform above average!

Check out the stats from Nation’s Restaurant News on the fast casual restaurant segment:

• Increasing 550% since 1999, ten times the growth in the fastfood industry.

• Exceeding its 5 year compound annual growth rate of 11.7% inone year (2014).

• Climbing 12.8% to $30 billion in annual sales in 2014. (Almostdouble the other restaurant segment’s growth rate.)

• Forecasting growth in the double digits through 2022. (Rest ofrestaurant industry predicted to grow half a percentage point.).

Page 11: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

Asian food has been named the fastest growing food market in the world, growing nearly 500 percent since 1999. This impressive growth can be accredited to the fact that people are now more inclined to try ethnic food due to its bolder flavor, healthy ingredients, and overall nutritional value. By using this new consumer trend to stand out amongst other fast casual restaurants, it has allowed for Asian-inspired food concepts to compete for customer’s loyalty.

Within recent years, consumers are now looking towards a healthier diet and active lifestyle. Due to this change, the fast food industry is taking a hit because they aren’t providing these healthy options. Fast casual restaurants, however, are not only providing more fresh options than a quick service restaurant (QSR) but they are also satisfying the need for convenience. This is why Teriyaki Madness has proven to be a welcomed concept in a market that is over-saturated with unhealthy options that no longer appeal to the consumer’s needs.

Because our food is fresh and made to order, the consumer can not only fulfill their need for a healthier option but they can completely customize it. If the customer wants, they can skip the carbs and go for veggies!

They can also easily alter the items on our menu to appeal to diet-restriction needs. Most items on our menu can be made gluten free upon request and by providing a customizable menu that is made to order, no consumer will leave without a healthy option that is hot and ready to go.

Convenience is everything in this day in age and Teriyaki Madness is rising to the top by providing exceptional service molded around the rising trend of the new health conscious generation.

ASIAN & HEALTHY FOOD TRENDS

WHY asian Food? 9

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12OUR CustomersWHO ARE THEY?

DEMOGRAPHICS• Age: 25– 54• 3+ Persons in Household• Married, with Families• Household Income: $50k - $70k+• Jobs vs. Owner

• Sweet Spot: Older Millenials,with Families and Jobs

PSYCHOGRAPHICS• Active Lifestyle• Health Aware• Fitness Interest• Educated• On The Go• Busy

10

Asian food is fresh and flavorful. Customers are getting tired of the same old American staples of burgers, pizza, and subs. Though Asian food is not new by any means, the Asian food restaurant category is the first choice in the U.S.! Most people who try our food, fall in love with it.

Page 13: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

RAVING FANSTMAD FANS TELL IT BEST

1 1

Reviewers

Our customers crave amazing food in big bowls! They hashtaggalore to show their addiction to the Madness. Customers glowabout us on Yelp, Facebook, Google and more!

Here are some real reviews from real Teriyaki Madness fans raving about our dedication to bringing them our flavors! Big bowls of awesomeness! #weloveourfans

Page 14: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

WHY WE’RE UNIQUE 12

the profitability (earning potential 21%)*

The Yearly Sales (average is $1,134507)*

The Same Store Sales Increase (Average is 12%!)*

The Business Model (simple and scalable)

The food (as hearty and delicious as it is healthy)

The Real Estate (small footprint, think strip malls)

territories are going fast (63 granted in 2018!)

*Refer to 2019 Franchise Disclosure Document (FDD)

Page 15: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

Let’s Talk Money! 13

$313,500Initial Investment Range

BIG BOWLS. BIG PROFITS.

* *

* Refer to our 2019 Franchise Disclosure Document

*-

$653,860

AVERAGE UNIT VOLUME SAME STORE SALES INCREASEPROFIT POTENTIAL UP TO

$1.13MILLION21%

FRANCHISE FEE: $45,000–$99,000

TOTAL START-UP COSTS: $313,500–$653,860*

ROYALTY: 6% gross sales

MARKETING FEE: 3% gross sales

WHAT CAN I MAKE?

12%*

Page 16: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

AVAILABLE TERRITORIES 14

The USA is a big place with lots of room for you to start your own TMAD and spread the Madness!All territories are available, except for Washington State, Las Vegas, and Hawaii.

Page 17: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

HEAR It FROM SHOP OWNERSFEEDBACK FROM ACTUAL FRANCHISE OWNERS

“I opened up the Teriyaki Madness in Bettendorf, IA. This is a new market. We have a lot of challenges but we’re doing really well and running smoothly. I have had a lot of other business experience and this is one of my favorites.”

- Rad PanditTeriyaki Shop OwnerBettendorf, IA

“We chose Teriyaki Madness because it was rated high as one of the fastest growing franchises out there. When I presented it to my wife she said, "you got to do it because we've always been searching for something healthy, fast and reasonably priced.”

- Jon MarshTeriyaki Shop OwnerMarina, CA

“I was looking into healthy alternatives and Teriyaki Madness came up. After eating there a few times, I was totally impressed with everything from food to service. It seemed like an easy concept that anybody without any background could learn very easily.”

- Dean ClarinoTeriyaki Shop OwnerLas Vegas, NV

“I am very particular about my food: ingredients, nutrition, additives, whether it’s frozen or not. When I went to TMAD I was very impressed. My kids and husband love it so much. The quality speaks for itself.”

- Qing LiTeriyaki Shop OwnerDenver, CO

15

Page 18: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

What Makes A Great TERIYAKI SHOP OWNER? 16

Desired Background, Skill Set & Goals of Teriyaki Madness Owners:

• Coachability• Work Ethic• Tenacity• Status• Trust• Operations Manual

“I’ve always wanted to

own my own restaurant!”

Page 19: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

A DAY IN THE LIFE 17

We encourage franchise owners or their managers to be actively involved in the operations of the business in the beginning. In the first six months to a year, this person will manage all aspects of their restaurants including:

• Guiding employees/managers to ensure the operations arexdrunning smoothly.

• Food preperation, assisting the cook line, Point of Sale (POS)system operation, training/hiring new employees, touchingtables and talking to guests.

• Monitoring inventory levels and placing orders with suppliers asvvwell as working with an accountant on bookkeeping tasks tovvkeep the financials top of mind.

“Once they try the food, not only are they going

to need it, they’re going to want it.”

Page 20: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

EDUCATION TIMELINE 18

1

2

3

4

5

6

IntroductionGetting to know each other.

Franchise Disclosure Document (FDD)Review and answer questions about information in the FDD.

Goals & Vision/Picture/Personality SurveyWe want to know your objectives, expectations, and goals so we can determine if we can help you achieve them. We want to determine cultural match.

Peer Review & ValidationTalk to franchisees.

DISCOVERY DAYMake plans to attend Discovery Day in Denver, CO. Try the food; tour a shop, meet a franchisee and find out what our team does to support each and every shop owner in our franchise system.

Executive InterviewSit with our Executives for a final interview and approval! We will finalize our decisions on whether we believe you can be successful at TMAD. You make your decision and lets start building!

TMAD FranchiseeSign the Franchise Agreement, pay the Franchise Fee, and become a franchisee!

“It’s just a great group of

people that work for you,

support you and put your

interests first.”

7

Page 21: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

STEPS TO open A SHOP 19

Real EstateOur Team helps you find the best location by teaming you with proven local brokers who know the area best!

ConstructionWe help you find the right General Contractor for the job to get your TMAD open as quickly and affordably as possible.

FinanceWe have the tools to help you run your company and benchmark with our proprietary finance dashboard.

SUPPLY CHAINWe set you up with our national vending partners like Sysco and Pepsi.

MARKETINGWe coach you on spreading TMAD to your community. From Grand Opening and Local Marketing to Social Media and more!

OPERATIONS (Training & Support)• Initial Training: 4 Days• Hands-On Training (HOT): 5 Days during the construction phase• On-Site Training: Occurs approx 14 days before and

around opening• Ongoing Support: Business Coaches provide continual supportfofor your open shop!!

Page 22: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

Future Growth 20

TMAD is a young brand that will open nearly 50 additional Teriyaki Shops in 2019!

The USA is a big place with lots of room for you to start your own TMAD and spread the Madness.

Don’t miss the opportunity of growth on the ground floor!

Page 23: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

MEET THE MANAGEMENT TEAM 21

Erin Hicks

Chief Operating OfficerErin Hicks provides the leadership, management and vision necessary to ensure that Teriyaki Madness has the proper operational controls, administrative and reporting procedures. She also ensures the correct people and systems are in place to effectively grow the organization and to guarantee financial strength and operating efficiency.

Relevant Experience• Executive Vice President at MauiWowi Hawaiian Coffees andSmoothies• Owner of a sports bar & grill

TMAD’s putting the soul in

franchising, read what Michael Haith,

owner and CEO, has to say about the concept here.

Michael Haith

Chief Executive OfficerMichael Haith’s role is to oversee Teriyaki Madness both at a corporate level and franchisee level. With almost 30 years of experience as a franchisee, franchisor, franchise investor and supplier, Michael has a unique perspective on what it takes to achieve success for entire franchise systems.

Relevant Experience• Franchisee of Pour La France!Catering• Managing partner of Maui WowiHawaiian Coffees and Smoothies.• Founded Franchise Sherpas, anincubator and investment firmdevoted to the partnership anddevelopment of emerging franchisors• Chairman-Mentor at Maui WowiHawaiian Coffees & Smoothies,Franchise Sherpas, Doc Popcorn,Kidcreate, and Raintree FranchiseSales Agency• Investor in start up franchises• Owner of Teriyaki Madness

John Miller

Chief Financial OfficerJohn Miller’s role is to increase profitability, so more shop owners will thrive and expand into multiple locations. John was drawn to TMAD because of the potential for our business model across the globe.

Relevant Experience• Multi-unit retail Chief FinancialOfficer for Chipotle, Native FoodsCafé, Carl’s Junior and Floyd’s 99Barbershops• Senior Financial Roles withMcDonald’s Corp. and KPMG - BigFour Public Accounting Firm• Owned and operated twoentrepreneurial stage retailbusinesses

Page 24: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

MEET THE MANAGEMENT TEAM 22

Joe Gordon

Executive Vice President of Logistics

Joe Gordon’s focus is the development and distribution of the highest quality products at the the best price. He oversees research and development of new products and contracting with suppliers and distributors.

Relevant Experience

• Director of Supply Chain, QualityAssurance & Research &Development at Portillo’s Hot Dogs• National Director of SupplierManagement at United Natural Foods• Vice President of Supply Chain &Quality Assurance at Noodles &Company

Janice Branam

Vice President of Training

Janice Branam’s responsibilities focus on franchisee training and support. She oversees the training team, business coaches and the departments of both Real Estate and Construction.

Relevant Experience

• Vice President of OperationsExcellence & Training atSmashburger• Vice President of Training &Operations at Quiznos• Franchise Owner of twoSmashburgers

Jodi Boyce

Executive Vice President of MarketingJodi Boyce’s role at TMAD includes overseeing the Marketing Team of five and touching anything related to the brand, including defining the brand voice, personality, supporting programs and overall national branding efforts.

Relevant Experience• Vice President of Marketing atSmashburger• Senior Director of Marketing atQuiznos• Hotdogger and driver for OscarMayer Wienermobile

Hank Janik

Vice President of Real EstateHank Janik brings a wealth of experience to contribute to the real estate development for new and multi-unit TMAD owners. Hank’s role is to find ideal locations for TMAD’s franchise owners and to plan market development for the brand.

Relevant Experience• Senior Real Estate Director atSchlotzsky’s• Executive Director at Moe’sSouthwest Grill• Multi-unit franchisee for a drycleaning concept

Page 25: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

REAL ESTATE & CONSTRUCTION 23

When it comes to real estate, Teriyaki Madness is uniquely flexible. From strip malls to power centers, from urban to small towns, and from new build to retro-fit, Teriyaki Madness can be adapted to a wide variety of real estate. When you work with Hank Janik, Vice President of Real Estate, you get the experience and guidance of a local broker, access to industry leading site selection technology and proven real estate metrics to achieve confident results. Location analytics technology aids the Real Estate Team with site selection to help determine if customers are near your location using data from current customers to discover where potential customers are in regards to households in proximity, drive time and more. While our shops range in size from 1,050 to 2,500+ square feet, we consider our “sweet spot” to be between 1,400 to 2,000 square feet. Typical TMAD Shops are near other national fast casual brands, with high traffic or pedestrian counts and surrounded by customers with known interests in fitness, sports, do-it-yourself projects and home décor.

Franchisees can build anywhere that there is not a previously established protected territory for an existing shop. Protected territories are dependent on market area and by the language contained in the Franchise Disclosure Document (FDD).

Real Estate Process:• Site Selection• Market Survey• Site Tours• Letter of Intent (LOI)• Lease Negotiation

Construction Process:• Design• Permitting- Furniture, Fixture,

& Equipment• Construction and Walk Through

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PRODUCT QUALITY & SUPPLY CHAIN 24

TMAD takes great pride in our menu and the products we serve. We always want to ensure that we only serve the best and that begins with high quality ingredients in our food. This is where Joe Gordon, our Vice President of Supply Chain, steps in to set you up with all of our national vending partners!

Each Teriyaki Shop is assigned a representative that assists in making sure the right products are delivered at the right time for the right price. This enables you to order and receive all of their products with ease. And of course, we are here to help make certain that distribution is streamlined and consistent to have a worry free experience!

Throughout the year we review all vendors, manufacturers, and suppliers to ensure that we are getting the best service, products and ingredients at the best price. We take pride in the relationships we have built and will continue to cultivate to make certain we are the industry leader in quality teriyaki!

Now the good stuff! Look below to see all of our national vendors:

• Pepsi• Sysco• Sanderson Farms• Tundra Restaurant Supplies• JSL Foods• EcoLab

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VENDOR RELATIONSHIPS 25

Ecolab provides water, hygiene and energy technologies and services to the food, energy, healthcare, industrial and hospitality markets. Their food safety services provide consulting restaurants, hospitals, food retailers and food & beverage manufacturers. It is also a supplier of chemicals used by beef and poultry processors to reduce pathogens like E. coli and salmonella in uncooked meats.

Sysco is the global leader in selling, marketing and distributing food products to restaurants. They operate 196 distribution facilities serving approximately 425,000 customers. We have a national agreement with Sysco. This enables our franchisees anywhere in the country to access our products with ease.

Pepsi is one of the world’s most iconic and recognized brands globally. Today, the Pepsi portfolio includes three products - Pepsi, Diet Pepsi and Pepsi MAX — that each generates more than $1 billion in annual retail sales. By partnering with Pepsi we have enabled our franchisees the opportunity to sell some of the best brands in drinks including Gatorade, Mountain Dew, Brisk, and Aquafina.

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OPERATIONS 26

Our team is there, from signing to opening and beyond! Janice Branam, Vice President of Franchise Systems will be with you the whole way, in fact, we are a little hard to get rid of! From full quarterly business reviews, mystery shops, goal setting, weekly reporting, and annual visits!

We are committed to your success and provide weekly support before and after your Teriyaki Shop opening. That support ranges from helping set-up your business, facilitating conversations with our preferred vendors, leading operational systems, ensuring compliance, health and safety regulations are being met and help guide you through effective Profit & Loss Management.

Operations not only trains and supports YOU but we help you train your ENTIRE STAFF! Our team of trainers are highly committed to your learning and the success of your Teriyaki Shop! They know our restaurants inside and out and will teach you the Teriyaki Madness “Culture of Service.”

Owning your own business is hard work and your investment of time, energy, and money is equally rewarding and exhausting. So that is what makes TMAD’S extensive operation, support and training so important!

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MARKETING 27

• Training and Planning: From strategy to tactics, we coverit all! We start building your local marketing plan from the day yousign your lease and provide local yearly marketing plans to keepthe momentum going!

• New Shop Opening: Our national public relations firm willintroduce your Teriyaki Shop to the community to get peopleexcited for your opening; and our robust, integrated marketingplan will reach potential customers at residences, businessesand everywhere in between!

• Local Shop Marketing: We provide you with a full library ofeffective, turnkey local marketing programs that will increasebrand awareness and community involvement directly in yourmarket.

• National Branding and Awareness Campaigns: Throughthree to four limited time offers (LTOs) and other national programs, we will promote TMAD nationally and locally to create brand buzz and get new customers in the door.

At TMAD we focus on exceptional customer service and in doing so we keep our customers coming back for more. In addition to a great customer experience and the addictive flavors of our food, you will have the support from our determined and experienced Marketing Team.

Jodi Boyce, Vice President of Marketing, and her team are devoted to helping TMAD franchise owners spread the message of the madness and growing the brand nationally and locally.

Our team works directly with agency partners and marketing support vendors to provide you with all the tools and processes to help you reach your sales goals and build vast brand awareness in your community. By providing four strategic levels of marketing programs, each new franchise owner can successfully build a local marketing program. Take a look below and see a sneak peek of what type of support you could have with TMAD!

Page 30: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

WITH OUR APP!

ORDERVISIT TERIYAKIMADNESS.COM/APP

OR SEARCH FOR US IN YOUR APP STORE!

Your phone will actually feed you. That’s right. With the new Teriyaki Madness app, you can have delicious, made-to-order bowls of teriyaki for pickup (or delivery in most markets).

This is just another exciting technology release that has kept TMAD above other concepts!

28Mobile AppORDER FOOD. FIND NEARBY SHOPS.

Page 31: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

Q: Investment ranges from $313,500 - $653,860* Why?

The spread is mainly based on the square footage of the location and the costs associated with the build-out, equipment, materials, general contractors, etc. Again, why we strive for retrofits. You can also see a detailed breakdown of the initial investment cost in Item 7 of the Franchise Disclosure Document (FDD) which is available after completion of the Confidential Questionnaire.

Q: Any additional revenue streams from the business model?

Yes, owners share the Madness by offering catering in their communities. Events, parties and corporate meetings can all experience TMAD. We have also rolled out third party delivery and a mobile app. A high percentage of sales are done outside of the four walls.

Q: How many employees do I need to run my store?

• Total Staff: 14• Per Shift: 2-6• 5-6 Employee Lunch Rush

Q: How do I get Financing?

We are here to help you find funding to open your own Teriyaki Shop. Once you’ve completed the Confidential Questionnaire, we will introduce you to well-known financing companies that have helped many of our franchisees obtain funding.

FAQ & MAD FACTS 29

Q: What makes TMAD special?

Teriyaki Madness is a fast casual restaurant concept serving up quality, fresh, healthy and flavorful Asian food in a high-vibe atmosphere. Through years of mastering marinating, grilling, and wok-ing, we were able to make bowls that are as hearty and delicious as they are healthy.

Our food is made when you order. Always fresh, never frozen marinated and grilled meats and customizable bowls meant for delicious and healthier eating.

Q: How many locations do you have open?

There are 55+ TMADs open. 2 locations are corporately owned; Virginia Beach and Boca Raton. Nearly 50 shops will open in 2019.

*Refer to the 2019 Franchise Disclosure Document (FDD)

Page 32: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

Teriyaki Madness Sells the Entire State of Hawaii!The Madness is expanding to Hawaii! TMAD’s franchisee, Ohmar Villavicencio, took the dive and bought the rights for the entire state of Hawaii. The first shop will be built in Kapolei, Hawaii and the expansion will continue over the next 10 years with at least 10 Teriyaki Shops. Read on!

Aaron Weissman Earns “National Franchisee of the year” AwardGreat Falls franchisee, Aaron Weissman, won the International Franchise Association ‘Franchisee of the Year’ Award. Aaron was recognized not only for being an awesome TMAD franchisee, but also for his hard work, strong sales, and his involvement in the Great Falls community. Read on!

Teriyaki Madness launches new mobile app: “Order in your underwear, but pick it up in pants”TMAD has rolled out our order-ahead mobile app! This drives sales and allows customers to order on the go. We were featured in The Street for the roll out of the mobile platform. Read the full story!

Asian fusion grill teriyaki Madness comes to burlingtonThe Hawk Eye featured Teriyaki Madness franchisees, Theresa & Adam Thielen, talking about one of the most successful Teriyaki Madness shop openings yet! Read the story!

IN THE NEWS 30

“The quality speaks

for itself!”

Page 33: 1 What is Teriyaki Madness?...of raving fans and started franchising. In 2012, after proving the business model, with 3 franchisees and 7 open shops, Teriyaki Madness began growing

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